Can fabless semiconductor superpower Nvidia Corp follow its AI-powered annus mirabilis with another quarterly revenue record?
According to America’s third-largest company (having just flipped Google parent Alphabet Inc (NASDAQ:GOOG)), yes!
Nvidia has set a fourth-quarter revenue target of around $20 billion on a 74.5% gross margin.
Hitting this target would indeed make for another all-time quarterly record following an $18.1 billion top-line figure in the third quarter and $13.5 billion in the second quarter.
It would also make for a 230% year-on-year increase against the $6.05 billion in revenues in the fourth quarter of fiscal 2023.
These numbers alone are nothing to sneeze at, but Nvidia has a propensity to exceed even the highest of internal and external revenue forecasts.
The group famously beat second-quarter 2023 guidance by $2.5 billion (make that $4 billion when going by Street guidance), a record beat in the semiconductor industry, before smashing third-quarter guidance by $2 billion once again.
Unsurprisingly, Nvidia shares took off like a rocket, more than tripling in value by the time 2023 came to a close, with the fabulous fabless chipmaker taking a comfortable seat in the trillion-dollar club.
Year to date, Nvidia has rallied another 50%.
These remarkable gains are all down to Nvidia’s prominent position in the artificial intelligence (AI) sector, with its flagship 100 series of chips becoming the processing unit of choice for data centres focused on AI applications.
Nvidia therefore owes a debt to OpenAI, given the ChatGPT developer chose Nvidia hardware to train its game-changing large-language model.
As of today, Nvidia has a market cap of $1.79 trillion.